A great Canadian company that specializes in different species of wood that are unique. A well run operation that allows the company to switch production from one species to another. They do this in the interests of optimizing the profitability of the company. Located in BC which gives them access to their plantations. They’ve invested quite a bit of money in trying to optimize operations further, and those initiatives have very high paybacks attached to them. The concerns are all around the softwood lumber agreements and how negotiations will proceed. This is a big question that is still outstanding. Even so, this company is still interesting at these levels.

Technical analyst Leon Tuey likes the profile. Year-over-year sales was up 10% and year-over-year earnings was up over 62%. ROE is 16.4% on a trailing basis and free cash flow yield is 8%, compared to 1.5% last year. Dividend yield of 3.72%. (Analysts’ price target is $2.32.)

The stock is kind of basing and recently has been consolidating into a bit of a weak triangle formation. This can result in a bullish formation if it breaks out. This is not negative or positive. Dividend yield of 4.15%.

A small player in the lumber sector. He has never owned a lumber stock before. It is a unique situation. You want a lumber stock in your portfolio. If they wait before cutting down trees, they are that much bigger when they finally do. Not having a resolution to the softwood lumber agreement will be a headwind for the sector, but they will find a way around it. (Analysts’ Target: $2.44).

Trading near a 52-week low, and 3rd quarter results were one of the best in the company’s history. It has the largest exposure to Asia, and their species mix allows them great products which are desired by the Japanese in particular. Well-managed and the balance sheet is in good shape. Dividend yield of about 4%.

He is a little more concerned about forest products and lumber companies right now in the short term. One of Trump’s promises was to come down hard on trade, and one of the easiest things to come down on is the softwood lumber agreement. He is staying on the sidelines right now.

It is a regulatory risk when you look at the softwood lumber agreement. You will see more softness in these stocks. Take a long look at prices and charts, but accumulate positions because they are not making any more trees.

One of the better managed lumber companies. The difference between this and some of the big guys is that they have markets in the Far East as well as Canada and the US. However, the slowdown in the Chinese market has hurt them a little, but they are continuing to work on improving their cost structure and getting better. One of the better names.

Between November through to April, basically the run-up into the spring selling season, is when the demand for lumber is. Lumber and forestry stocks tend to go higher. They average about 60% gain between November and April. Even October tends to be a positive month. Technically it is now bumping up against resistance at about $2.35.

Produces lumber and logs. Very cheap stock and pays a nice dividend. He likes the sector, particularly in the US. Very good balance sheet with debt being about half of cash flow. Trading at 9X forward earnings. He likes this quite a lot.

The forest products sector has very, very strong seasonality. The strength is from the middle of October through until the beginning of April. The longer-term trend is still on the upside. He is looking for it to continue to move higher. If you break the level from last fall, that is the key because you could have a spurt up to around $1.92.

This site is used by investors to track what stock experts say. It is useful as an online investing tool for due diligence, and for getting a feel for how companies are thought of by investment experts. This site should not be your only resource or reference, but it should be one of the investing tools in your arsenal for wise investing in the stock market.

Stockchase only reports on what has been discussed by individuals who appear on business television programs, in particular Business News Network . Stockchase, in its reporting, neither recommends nor promotes any investment strategies that have been discussed.

On the VERY rare occasion we make a mistake. If you see something that you know is not right, feel free to email us. at Mistake was made!